Cryptocurrency regulators and industry observers are closely watching the case of the Peraire-Bueno brothers, Anton and James, who face serious charges related to a substantial Ethereum exploit. After a deadlocked jury and a judge’s declaration of a mistrial, prosecutors are pushing for a swift retrial, which could happen as soon as late February or early March 2026. The outcome of this trial could have significant implications for DeFi security and crypto trading practices.

The Peraire-Bueno brothers are charged with wire fraud, money laundering, and conspiracy linked to a $25 million exploit on Ethereum.
A mistrial was declared after jurors failed to reach a verdict, prompting prosecutors to seek a new trial scheduled for early 2026.
The case highlights ongoing concerns regarding DeFi vulnerabilities and regulatory scrutiny over blockchain exploits.
Jurors experienced emotional and psychological stress during the deliberation, with some reporting sleeplessness and emotional breakdowns.
The impact of a potential guilty verdict could resonate across crypto markets, especially regarding Ethereum-based trading and smart contract security.

Anton and James Peraire-Bueno, two brothers involved in a high-profile Ethereum blockchain exploit, are likely to face a second trial as early as February, following a recent legal development. In a motion filed in the U.S. District Court for the Southern District of New York, attorneys representing the federal government requested that a retrial be scheduled “as soon as practicable in late February or early March 2026.”

The filing came shortly after a judge declared a mistrial three days into jury deliberations, citing the jury’s inability to produce a unanimous verdict. The case has attracted considerable attention within the crypto industry due to its potential impact on DeFi security frameworks and regulatory oversight of blockchain exploits.

Source: Courtlistener

The brothers are charged with conspiracy to commit wire fraud, money laundering, and conspiracy to receive stolen property, related to their use of MEV (maximal extractable value) bots to exploit approximately $25 million worth of digital assets in 2023. This case underscores the ongoing risks and complexities associated with DeFi protocols and blockchain security, especially as regulators increase scrutiny on exploiting smart contracts and trading algorithms.

The case has also raised questions about the future of Ethereum trading and the broader implications for blockchain innovation, particularly regarding how legal outcomes might influence the development and adoption of DeFi platforms.

What could change in a second trial?

Deliberations lasted over three days before the jury announced their inability to reach a consensus. During this period, jurors posed several questions seeking clarification on testimony and definitions, such as “good faith,” highlighting the case’s complexity.

“Yesterday, half of the jury spontaneously broke down in tears, and several members reported sleepless nights,” a court filing revealed. “The jurors have endured significant emotional and financial hardship, being sequestered from their jobs and families for almost a month.”

As of Wednesday, the court had yet to specify a date for the retrial, leaving the crypto community to anticipate potential legal shifts that could influence the regulation of blockchain exploits and crypto markets at large.

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